A Concise Guide To The Employees' Compensation Ordinance (With Frequently Asked Questions On Common Employees' Compensation Issues)

A Concise Guide
to the
Employees Compensation Ordinance
(with Frequently Asked Questions on
Common Employees Compensation
Issues)

Labour Department
October 2012 Edition

Table of Contents Page
Introduction 1- 2
Part I
Chapter 1 Application of the Ordinance 3
Chapter 2 Liability for Compensation for Work Injury and
Occupational Disease
Injury by Accident 4 -5
Occupational Disease 5
Chapter 3 Notification of Accidents 6
Chapter 4 Settlement of Employees Compensation Claims 7 - 9
Chapter 5 Amount of Compensation
Fatal Cases 10
Non-fatal Cases
Permanent Incapacity 10 - 11
Temporary Incapacity 11 - 12
Medical Expenses 12 - 14
Prostheses and Surgical Appliances 14 15
Note : Compensation Level of Various Items 16 - 17
Chapter 6 Calculation of Earnings 18 - 19
Chapter 7 Assessment of Permanent Loss of Earning Capacity 20 - 21
Chapter 8 Compulsory Insurance 22 - 24
Chapter 9 Miscellaneous
Medical Examination and Treatment 25 - 26
Liability of the Principal Contractor 26 - 27
Claims for Common Law Damages 27
Contracting Out 28
Employment Protection 28

Appendices
1. First Schedule - List of Injuries 29 - 32
2. Second Schedule List of Occupational Diseases 34 - 43
Part II
Frequently Asked Questions on Common Employees Compensation Issues 44 - 58

This guide, in its first part, sets out briefly the main provisions of
the Employees Compensation Ordinance, Chapter 282 of the Laws of
Hong Kong. The Ordinance lays down the rights and obligations of
employers and employees in respect of injuries or death caused by
accidents arising out of and in the course of employment, or by
prescribed occupational diseases under the Ordinance. While every
care has been exercised in preparing this guide, the Ordinance remains
the sole authority for the provisions of the law explained. The full text
of the Ordinance has been uploaded to the Bilingual Laws Information
System of the Department of J ustice
(http://www.legislation.gov.hk/eng/home.htm).

The second part is a question-and-answer section on some
common employees compensation issues which aims at explaining the
procedures and administrative measures adopted by the Employees
Compensation Division of the Labour Department in handling and
processing employees compensation claims; as well as answering
some frequently asked questions in relation to the Ordinance.

This guide and other publications related to employees
compensation have been uploaded to the Labour Department website
(http://www.labour.gov.hk/eng/public/content2_7.htm).

If you have queries about the Ordinance, please call 2717 1771
(the hotline is handled by the 1823 Call Centre). For enquiries on
individual compensation claims, please approach the relevant office of
the Employees Compensation Division of the Labour Department:

Introduction
- 1 -

Branch Office of the Employees
Compensation Division,
Labour Department
[Work injury cases: according to place
of accident ]
Prescribed Occupational Disease cases:
according to place of employment]
Address
Hong Kong Office
(cases on Hong Kong Island,
outlying Islands and outside Hong Kong)
Rm 1605, 16/F,
Southorn Centre,
130 Hennessy Road,
Wanchai, Hong Kong
Kowloon Office
(cases in Kowloon, Sai Kung and cases
involving seamen and government
employees)
Rm 1007, 10/F, Cheung Sha
Wan Government Offices,
303 Cheung Sha Wan Road,
Kowloon
Tsuen Wan Office
(cases in Kwai Chung, Tsing Yi, Tsuen
Wan, Tuen Mun and Yuen Long)
6/F, Tsuen Wan Government
Offices,
38 Sai Lau Kok Road,
Tsuen Wan, New Territories
Shatin Office
(cases in Shatin, Taipo, Fanling and
North District)
Rm 239, 2/F,
Shatin Government Offices,
1 Sheung Wo Che Road,
Shatin, New Territories
Fatal Cases Office Rm 601, 6/F,
Harbour Building,
38 Pier Road,
Central, Hong Kong

Office Hours: Mondays to Fridays:
9:00 a.m. to 1:00 p.m.
2:00 p.m. to 6:15 p.m.
Saturdays, Sundays and Public Holidays: Closed

- 2 -

Part I

The Ordinance applies to all full-time or part-time employees
who are employed under contracts of service or apprenticeship.

The Ordinance also applies to employees employed in Hong
Kong by local employers injured while working outside Hong Kong.
Even if the employer is a person carrying on business outside Hong
Kong, the Ordinance still applies if the employer submits to the
jurisdiction of the Courts of Hong Kong and the employees have
been recruited or engaged in Hong Kong.

The Ordinance also applies to crew members of a Hong Kong
ship, and any person employed in any capacity on board of a Hong
Kong ship. If the employee is a crew member of a foreign ship and
have been recruited or engaged in Hong Kong, even if the accident
causing the personal injury occurred outside Hong Kong, the
Ordinance still applies if the employer submits to the jurisdiction of
the Courts of Hong Kong.

The Ordinance does not apply to:

(a) casual employees (but still applies to part-time domestic
helpers, employees employed either for the purposes of the
employers trade or business, or for the purposes of any game
or recreation and are engaged or paid through a club); or

(b) outworkers; or

(c) members of the employers family who live with him (but still
applies if an employees compensation insurance policy under
this Ordinance is in force in respect of such family members).

Chapter 1 Application of the Ordinance
- 3 -

Injury by Accident

If an employee sustains an injury or dies as a result of an
accident arising out of and in the course of his employment, his
employer is in general liable to pay compensation under this
Ordinance even if the employee might have committed acts of
faults or negligence when the accident occurred.

An accident to an employee resulting in injury or death is
deemed to arise out of and in the course of his employment if it
happens in the following circumstances:
(a) while travelling as a passenger to or from his place of work by
a means of transport operated or arranged by his employer and
other than as part of a public transport service;
(b) while travelling by a direct route between his residence and his
place of work for the purpose of and in connection with his
employment by driving or operating a means of transport
arranged or provided by his employer;
(c) when typhoon signal No. 8 or above or a red /black rainstorm
warning is in force, while travelling from his place of
residence to his place of work by a direct route within a period
of four hours before the time of commencement of his working
hours for that day, or from his place of work to his place of
residence within a period of four hours after the time of
cessation of his working hours for that day; or
(d) while travelling, for the purpose of and in connection with his
employment by any means of transport permitted by his
employer, between Hong Kong and any place outside Hong
Kong or between any other such places outside Hong Kong.

An employer is not liable to pay compensation in the following
circumstances:
(a) the injury does not result in permanent incapacity nor
incapacitate the employee from earning full wages at his
normal work;
(b) the injury is a deliberate self-injury;
Chapter 2 Liability for Compensation for Work
Injury and Occupational Disease
- 4 -

(c) the death or incapacity results from an injury (including a
specified occupational disease) which the employee has
falsely represented to his employer that he was free from; or
(d) the injury is caused by an accident directly attributable to the
employees addiction to drugs or his having been at the time
of accident under the influence of alcohol and does not result
in death or serious and permanent incapacity.

Occupational Disease

An employee suffering incapacity arising from an occupational
disease is entitled to receive the same compensation as that payable
to an employee injured in an accident arising out of and in the
course of employment, if the disease is one due to the nature of any
occupation in which he was employed at any time within the
prescribed period immediately preceding the incapacity caused. The
occupational diseases covered by the Ordinance and the prescribed
period are specified in the Second Schedule annexed to the
Ordinance (Appendix 2).

If the employee has been employed by more than one
employer during the prescribed period in the same or in a similar
occupation, all the employers may be responsible for paying
compensation, though not necessarily to the same extent.

Before employing an employee in a trade or industry in which
an occupational disease is prone to be contracted by employees, the
employer may, at his own cost, require the employee to be
medically examined by a registered medical practitioner. An
employee refusing to undergo the medical examination may forfeit
his entitlement to compensation in the event of death or incapacity
caused by an occupational disease.

An employee may still claim compensation under the
Ordinance for a disease outside the Second Schedule if it is
certified to be a personal injury by accident arising out of and in the
course of employment.
- 5 -

Responsibility of an Employee

An injured employee should give the employer notice of the
accident as soon as possible. Failure to give prompt notice may
jeopardize and delay the claim of employees compensation. Notice
may be given orally or in writing to the employer or to the
employees supervisor. The employer is presumed to have had notice
of an accident if the employee dies on the employers premises.

Responsibility of an Employer

According to section 15 of the Ordinance, an employer must
notify the Commissioner for Labour of any accident or prescribed
occupational disease in the following manners, irrespective of
whether the accident or the occupational disease gives rise to any
liability to pay compensation:

Resulting in Notice Period Form
Work Injury Incapacity for a
period not exceeding
3 days
Within 14 days
Form 2B
Incapacity for a
period exceeding 3
days
Within 14 days
Form 2
Death Within 7 days
Occupational
Disease
Incapacity Within 14 days Form 2A
Death Within 7 days

If the employer is not aware of the happening of the accident
within the respective periods, he must notify the Commissioner for
Labour within 7 or 14 days, as the case may be, after the accident
came to his knowledge.

Any employer who, without reasonable excuse, fails to give
notice of an accident or makes or furnishes any false or misleading
statement to the Commissioner for Labour commits an offence and
is liable to a maximum fine of $50,000.

Chapter 3 Notification of Accidents
- 6 -

1. Direct Payment by Employer

If the accident incapacitates the employee for not more than 3
days and does not result in permanent incapacity, the employer
should make payment for temporary incapacity (i.e. periodical
payment for the sick leave required) on the same days as wages
would have been payable to the employee. The employer should
also pay the medical expenses concerned.

2. Determination of Compensation by Agreement according
to the Ordinance

For the injury involving only temporary incapacity for a period
exceeding 3 days but not more than 7 days, the employer may
directly agree with the employee as to the compensation payable
under the Ordinance and make such payment on the same days or
before which wages would have been payable to the employee. The
employer should also pay the medical expenses concerned.

3. Certificate of Compensation Assessment issued by the
Commissioner for Labour

For other cases, the Commissioner for Labour will assess the
compensation payable under the Ordinance and issue to the
employer and the employee a Certificate of Compensation
Assessment (i.e. Form 5) stating the amount of compensation
payable. If the injury results in temporary incapacity only, the
certificate will be issued after medical clearance. If in the opinion of
the Commissioner that the injury would likely result in permanent
total or partial incapacity, the employee concerned will be referred
to the Employees Compensation Assessment Board for assessment
and Form 5 will be issued after the Certificate of Assessment (i.e.
Form 7 or 8) is issued by the Assessment Board.

Chapter 4 Settlement of Employees Compensation
Claims
- 7 -

Any objection to the compensation assessment by either
party must be made in writing to the Commissioner for Labour
within 14 days after the issue of Form 5, with a copy of the
objection notice sent to the other party. On receipt of the objection
notice, the Commissioner for Labour will review its assessment and
issue a Certificate of Review of Compensation Assessment (Form 6)
to both parties.

The employer should pay the employee within 21 days from
the date of issue of the certificate the amount of compensation, or
any outstanding amount, stated in the certificate. The employer
should also pay the medical expenses concerned.

Note: Surcharge

Section 16A of the Ordinance provides that if the employer
fails, without reasonable excuse, to pay to the employee the amount
of compensation within 21 days after the issue of Certificate of
Compensation Assessment (Form 5) or Certificate of Review of
Compensation Assessment (Form 6), he is liable to pay to the
employee a surcharge of $550
(Note)
or 5% of the amount of
compensation then remaining unpaid, whichever is the greater. The
employer is liable to pay a further surcharge of $1,100
(Note)
or 10%
of the aggregate amount of compensation then remaining unpaid,
whichever is the greater, if he still fails to pay within 3 months after
the expiry of the payment period.

Any employer who, without reasonable excuse, fails to pay the
compensation or a surcharge commits an offence and is liable to a
maximum fine of $100,000.

(Note) For work injuries caused by accidents happening or prescribed occupational
diseases contracted on any date between 1 August 2010 and 20 J uly 2012 ,
the surcharge and further surcharge are $500 and $1,000 respectively.

- 8 -

4. Determination by Court

For cases which should be settled by direct payment (i.e. cases
involving temporary incapacity for a period not exceeding 3 days)
but remain unsettled, the injured employee may recover the
compensation from the employer in the Small Claims Tribunal.
Other compensation claims which cannot be settled in the above
ways shall be determined by the District Court.

IMPORTANT NOTE

Section 14(1) of the Ordinance stipulates that an application to
the Court for employees compensation has to be made within 24
months from the date of the accident causing the injury. Therefore,
if a case cannot be settled by the end of the 18
th
month from the
date of accident, the employee concerned should contact the
Employees Compensation Division of the Labour Department as
soon as possible. Subject to the decision of the employee, the
Division would assist the employee either to approach the Legal
Aid Department for further assistance, or to register his claim
direct at the District Court.

- 9 -

Fatal Cases

If an employee dies as a result of an accident arising out of and in
the course of employment (or a prescribed occupational disease), the
employer shall be liable to pay compensation for death to his
surviving members of the family. The amount of compensation
payable is calculated with reference to the age and monthly earnings
of the deceased employee as below (please refer to Chapter 6 for
details of the monthly earnings):
Age of Deceased
Employee
Amount of Compensation
Under 40 84 months earnings
(Note 1)

or minimum amount of
compensation
(Note 2)
,
whichever is higher
40 to under 56 60 months earnings
(Note 1)

56 or above 36 months earnings
(Note 1)

The compensation shall be apportioned among the eligible
members of the family of the deceased employee in accordance with
the apportionment schedule (the Seventh Schedule) stipulated in the
Ordinance. The Commissioner for Labour or the Court may
determine the amount of the compensation for death. The employer is
also liable to reimburse funeral and medical attendance expenses, up
to a maximum of $70,000
(Note 3)
, to the person who has paid such
expenses.

Non-fatal Cases
Permanent Incapacity

Compensation payable for permanent total incapacity resulting
from a work injury varies with the employees age at the time of the
accident. The amount of compensation payable is calculated with
reference to the age and monthly earnings of the injured employee as
below:

Chapter 5 Amount of Compensation

- 10 -

Age of Injured
Employee
Amount of Compensation
Under 40 96 months earnings
(Note 4)

or minimum amount of
compensation
(Note 5)
,
whichever is higher
40 to under 56 72 months earnings
(Note 4)

56 or above 48 months earnings
(Note 4)

Where permanent partial incapacity results from the injury, the
amount of compensation is a percentage of the compensation payable
for permanent total incapacity as is proportionate to the loss of
earning capacity permanently caused by the injury.

Amount of compensation due
to permanent total incapacity
x Percentage of permanent
loss of earning capacity

Employees Compensation Assessment Boards are appointed by
the Commissioner for Labour to assess the percentage of the loss of
earning capacity caused by injuries.

If the injured employee suffers from permanent incapacity and is
unable to perform the essential actions of life without the attention of
another person, compensation for attention shall be payable. It should
be:
(a) such an amount not exceeding $462,890
(Note 6)
as the Court
considers necessary; or
(b) an amount of $462,890
(Note 6)
as specified by the Ordinance and
set down in an agreement entered into by the employer and the
injured employee and approved by the Commissioner for
Labour.
Temporary Incapacity
Section 10 of the Ordinance stipulates that during the period of
temporary incapacity, the employer shall pay the injured employee
periodical payments at the rate of four-fifths of the difference
between the employees monthly earnings at the time of the accident
and his monthly earnings during the period of temporary incapacity.

- 11 -

The periodical payments shall be payable on the same days as
wages would have been payable. An employer who, without
reasonable excuse, fails to pay within 7 days after the due day
commits an offence and is liable on conviction to a maximum
fine of $100,000.

IMPORTANT NOTE
An employee should not work for another employer without
the knowledge and consent of his employer during his sick leave
period. Otherwise, he might be considered having committed a
fraudulent act.
A period of absence from duty certified to be necessary by a
registered medical practitioner, a registered Chinese medicine
practitioner, a registered dentist or an Employees Compensation
Assessment Board is deemed to be a period of temporary incapacity.
The employer shall pay compensation for death or permanent
total or partial incapacity, as the case may be, in addition to any
periodical payments previously due.

When the employees temporary incapacity lasts more than 24
months or a further period that the Court may allow (that further
period shall not be longer than 12 months), he shall no longer be
entitled to periodical payments. The employee shall be regarded as
having suffered permanent incapacity and compensation shall be
assessed accordingly.

Medical Expenses

Section 10A of the Ordinance stipulates that unless an employer
has provided adequate free medical treatment to the employee, the
employer is liable to pay medical expenses (including fees for
consultation, any surgical or therapeutic treatment, cost of nursing
attendance, hospital accommodation as an in-patient, medicines,
curative materials and medical dressings, etc) in respect of the period
during which the employee receives medical treatment from a
registered medical practitioner, a registered Chinese medicine
practitioner or a registered dentist until the attending registered
- 12 -

medical practitioner, registered Chinese medicine practitioner

or
registered dentist certifies that no further treatment is required.

An employer is liable to pay the medical expenses in respect of
medical treatment of any description received by an employee unless
the free medical treatment provided by the employer covers medical
treatment of the same description. Medical treatment given by, or
under the supervision of, a registered medical practitioner, a
registered Chinese medicine practitioner or a registered dentist shall
be payable under the Ordinance. The employer is also liable to pay to
the injured employee medical expenses in respect of medical
treatment given by, or under the supervision of, a registered
physiotherapist, a registered occupational therapist or a registered
chiropractor.

The daily maximum of medical expenses payable by the
employer are as follows:

The medical expenses for each day of stay in the hospital
where an employee is given medical treatment as an
in-patient
$200
The medical expenses for each day on which an employee
is given medical treatment other than as an in-patient in a
hospital
$200
The medical expenses for each day on which an employee
is given medical treatment both as an in-patient in a
hospital and other than as an in-patient in a hospital
$280

Where the medical expenses for the medical treatment of an
employee include the cost of medicines, the medicines shall be
prescribed by a registered medical practitioner, a registered Chinese
medicine practitioner or a registered dentist and prescribed for the
direct treatment of the relevant injury.

Unless the prescription contains a direction that the medicines
are to be dispensed for a stated number of times and the medicines are
dispensed in accordance with that direction, the employee shall not be
reimbursed any cost of medicines relating to medicines dispensed
pursuant to the same prescription on the subsequent occasions.
- 13 -

An employer should pay the injured employee medical expenses
within 21 days after the employee has submitted the receipts for
payment of medical expenses. If payment is defaulted by the employer,
the employee may recover the medical expenses from the employer in
the Small Claims Tribunal or the District Court, whichever is more
appropriate.

An employer is also liable to pay the medical expenses for
medical treatment given outside Hong Kong in respect of a work
injury sustained by an employee outside Hong Kong and arising out
of and in the course of that employees employment. The daily
maximum amount is the same as that for injuries sustained in Hong
Kong. Where necessary, an employer or an employee may apply to
the Commissioner for Labour for a certificate for determining the
amount of medical expenses to be paid by the employer.

Prostheses and Surgical Appliances

According to the Ordinance, if an employee sustains an injury
by accident arising out of and in the course of employment and
requires a prosthesis or surgical appliance, his employer is liable to
pay:

(a) the initial costs of supplying and fitting the prosthesis or surgical
appliance, subject to a maximum amount of $33,460
(Note 7)
; and
(b) the probable costs of repair and renewal of such an item during a
period of 10 years after the initial fitting of the item, subject to a
maximum amount of $101,390
(Note 8)
.

The employer would not be liable to pay for the costs of such
prostheses or surgical appliances unless:

(a) the employee submits himself to treatment by a registered
medical practitioner, a registered Chinese medicine practitioner
or a registered dentist;
- 14 -

(b) the prostheses or surgical appliances are supplied and fitted to
the employee; and
(c) the item so supplied and fitted is manufactured or on sale in
Hong Kong, and is certified by the Prostheses and Surgical
Appliances Board as necessary and reasonable in cost.

If an employee sustains a work injury outside Hong Kong in an
accident arising out of and in the course of his employment, and
submits himself to medical treatment by or under the supervision of a
person who is allowed to practise medicine, surgery or dentistry in the
place where such medical treatment is given, the employer shall, if the
Prostheses and Surgical Appliances Board approves, be liable to pay for
the cost of supplying and fitting the prosthesis or surgical appliance
required, subject to a maximum amount, which is the same as that for
injuries sustained in Hong Kong.

An employer is obliged to grant the necessary leave of absence
from work to an employee who is required to attend a Prostheses
and Surgical Appliances Board for purposes of examination or
assessment. If the employer is the same employer of the employee at
the time of accident, then the employer must pay the employee his
normal wages for such absence from work.

The Director of Health will take such steps as necessary to
ensure the supply, fitting, repair and renewal of the prosthesis or
surgical appliance to the injured employee. The Director may make
claims from the employer for such costs.

An employer is required to pay the amount claimed by the
Director of Health within one month after the receipt of the request
for payment, unless he disputes his liability to pay or the necessity or
cost of the initial fitting or supplying of the item. Any dispute shall be
determined by the Court. However, an employer is required to deposit
the amount of the costs with the Director of Health until such dispute
is determined. On the other hand, an employer may not dispute the
necessity for repair and renewal of the item.

- 15 -

Note: Compensation Level of Various Items

(Note 1) Monthly earnings are subject to a maximum for the
purpose of calculating compensation for death:
Work injuries caused by accidents happening or
prescribed occupational diseases contracted on or
after 21 J uly 2012: $23,580
prescribed occupational diseases contracted on any
date between 1 August 2010 and 20 J uly 2012:
$21,500
(Note 2) Minimum amount of compensation for death:
after 21 J uly 2012: $340,040
$310,000
(Note 3) For fatal case that work injuries caused by accidents
happening or prescribed occupational diseases contracted
before 21 J uly 2012, any person who has paid funeral
and/or medical attendance expenses is entitled to claim
reimbursement from the employer of the deceased
employee of such expenses not exceeding $35,000.
(Note 4) Monthly earnings are subject to a maximum for the
purpose of calculating compensation for permanent total
incapacity:
after 21 J uly 2012: $23,580
$21,500
(Note 5) Minimum amount of compensation payable for permanent
incapacity:
after 21 J uly 2012: $386,110
$352,000
- 16 -

(Note 6) For work injuries caused by accidents happening or
prescribed occupational diseases contracted on any date
between 1 August 2010 and 20 J uly 2012, the maximum
amount of compensation for employees requiring
attention is $422,000.
prescribed occupational diseases contracted before 21
J uly 2012, the maximum amount of initial costs of
supplying and fitting the prosthesis or surgical appliance
is $33,000.
prescribed occupational diseases contracted before 21
J uly 2012, the maximum amount of probable costs of
repair and renewal of prosthesis or surgical appliance
during a period of 10 years after the initial fitting of the
item is $100,000.

- 17 -

For the purposes of the Ordinance, earnings includes:
(a) cash wages;
(b) the value of any privilege or benefit which can be estimated in
cash, e.g. food, fuel or quarters supplied to the employee, if as a
result of the accident he is deprived of any of them;
(c) overtime payments or other special remuneration, whether by way
of bonus, allowance or otherwise, if it is of a constant nature; and
(d) customary tips.

Under the Ordinance, earnings does not include items such as
remuneration for intermittent overtime, casual payments of a
non-recurrent nature, the value of travelling allowances or concession
and the employers contributions to provident funds.

The monthly earnings is to be taken as the earnings for the
month immediately preceding the date of the accident, or the average
monthly earnings for the previous 12 months of employment (or any
lesser period if the employee has not been so long employed),
whichever calculation is more favourable to the employee.
According to the Minimum Wage Ordinance
(Note)
, if the wages
payable to an employee in respect of any wage period are less than the
minimum wage, he is entitled to be paid the difference (i.e. additional
remuneration). The employer is required to include the amount of
additional remuneration (if any) in calculating the monthly earnings
for the purpose of employees compensation.

(Note) The statutory minimum wage (SMW) comes into force on 1 May 2011. The
Minimum Wage Ordinance does not apply to persons to whom the Employment
Ordinance does not apply, live-in domestic workers (irrespective of their sex or
race), student interns as well as work experience students during a period of
exempt student employment. Should there be any enquiries on SMW, please call
2717 1771 (the hotline is handled by the 1823 Call Centre) or visit offices of the
Labour Relations Division of the Labour Department.

Chapter 6 Calculation of Earnings
- 18 -

According to section 11 of the Ordinance, where an employee
suffers temporary incapacity for more than 12 (and 24) months after
the date of accident, his monthly earnings should be adjusted for the
purposes of calculating compensation at the end of the 12 (and 24)
month period. Such an adjustment shall be made in accordance with
the average rate of increase of the earnings in respect of other persons
of similar earning capacity employed by the employer in similar
employment. Where there is no such other persons, the rate of
increase in the Consumer Price Index (A) at the end of the 12 (and 24)
month period after the date of accident shall be used.
Where the injured employee was, at the time of the accident,
under the age of 18 or employed as an apprentice, his monthly
earnings shall, for the purposes of assessing compensation payable in
the case of death or permanent incapacity, be assessed as if he were
an adult employee or, in the case of an apprenticeship, as if he had
completed his apprenticeship training.

For the purpose of assessing compensation payable, the
minimum rate of earnings is deemed to be $3,490 per month.

- 19 -

The loss of earning capacity suffered by an injured employee
permanently is assessed by a two-tier Employees Compensation
Assessment Board appointed by the Commissioner for Labour. As
stipulated in section 16D of the Ordinance, the Employees
Compensation (Ordinary Assessment) Board, comprising 2 registered
medical practitioners, registered Chinese medicine practitioners or
registered dentists and a Labour Officer, is responsible for assessing
the period of absence from duty necessary and the percentage of
permanent loss of earning capacity permanently caused by the injury
in accordance with the Ordinance. The First Schedule annexed to the
Ordinance (Appendix 1) specifies the percentage of loss of earning
capacity for a number of injuries. In case the injury is not specified,
the percentage shall be assessed having regard so far as possible to
the First Schedule.

Where it appears to an Employees Compensation (Ordinary
Assessment) Board that such assessment is inadequate to reflect the
loss of earning capacity permanently caused by the injury in the
special circumstances of the injured employee, the claim may be
referred to the Employees Compensation (Special Assessment)
Board which will make its assessment having regard to the special
circumstances of the employee, such as the nature of injury in
relation to the employees former usual employment, qualifications,
previous training and experience.

The Assessment Board will issue to the employee and the
employer a Certificate of Assessment (i.e. Form 7 or 8) stating the
assessment result. Any objection to the assessment by either party
must be made in writing within 14 days after the issue of the
certificate. On receipt of the objection notice, the Labour Department
will arrange an Assessment Board to review its assessment. The
Assessment Board will issue a Certificate of Review of Assessment
(i.e. Form 9 or 10) upon completion of the review. Further objection
by either party shall be made to the District Court within 6 months
after the issue of the certificate.

When an employee has recovered or his medical condition is
stabilized and is required by an Employees Compensation
Assessment Board to attend an assessment, the employer has to grant
him the necessary leave of absence from work. If the employer is the
Chapter 7 Assessment of Permanent Loss of Earning
Capacity
- 20 -

same employer of the employee at the time of accident, the employer
must pay the employee his normal wages for the said absence from
work.
- 21 -

According to section 40 of the Ordinance, no employer shall
employ any employee in any employment unless there is in force a
policy of insurance to cover their liabilities both under the Ordinance
and at common law for injuries at work in respect of all their
employees, irrespective of the length of employment contract or
working hours, full-time or part-time employment. Should there be
any queries on legal liability, employers should seek professional
legal advice.

The minimum insurance cover should be for an amount:

No. of Employees Amount of Insurance Cover per Event
not more than 200 not less than $100 million
more than 200 not less than $200 million

An employer who fails to comply with the Ordinance to secure
an insurance cover commits an offence and is liable on conviction
to a maximum fine of $100,000 and imprisonment for two years.

Where a principal contractor has undertaken to perform any
construction work, he may take out an insurance policy for an amount
not less than $200 million per event to cover his liability and that of
his sub-contractor(s) under the Ordinance and at common law. The
principal contractor and his sub-contractor(s) of a project should
clearly define their liability in this respect in writing.

A group of companies as defined in section 2 of the
Companies Ordinance may take out an insurance policy for an
amount not less than $200 million per event to cover the liability
under the Ordinance and at common law in respect of the companies
in the group specified in the policy.

Chapter 8 Compulsory Insurance
- 22 -

An insured employer is required to display, in a conspicuous
place on each of his premises where any employee is employed, a
notice in both English and Chinese, showing the name of the employer,
the name of the insurer, the policy number, the issue date of policy, the
commencement and expiry dates of the period of insurance, the number
of employees insured and the amount of liability insured under the
policy.

When an employer who has been insured becomes liable to pay
any sum (including the employees compensation and common law
damages) to his employee in respect of a work injury, such sum shall
become due and payable by the insurer, notwithstanding anything to
the contrary in the policy of insurance. However, the insurers liability
per event is only up to the amount insured under the policy.

An employee or any other person (e.g. the member of the family
of an employee who sustained a fatal accident) having a claim against
the employer, is entitled to recover directly from the insurer the entitled
amount in his own name, as though he were a party to the insurance
policy. An employee can take proceedings against the insurer, even
without taking proceedings against the employer, if:

(a) the employer cannot be readily located in Hong Kong;
(b) the employer is insolvent; or
(c) the insurer has disclaimed liability.

IMPORTANT NOTE

The minimum amount of insurance cover specified in the Ordinance is not
the maximum liability that the party concerned is required to bear under the
Ordinance and at common law. The party concerned should therefore
carefully assess the possible risk and consult insurers for professional advice
on whether an insurance policy for an amount more than the minimum
under the Ordinance should be taken out.

- 23 -

An employer shall, within 10 days after receiving the written
request of an injured employee, produce for inspection to the employee
the policy of insurance and all other documents relating to the policy.

An employer shall not make any deduction from the earnings of
an employee in order to defray the cost of insuring against his
liability to pay compensation. An employer who contravenes this
provision commits an offence and is liable on conviction to a
maximum fine of $10,000 and imprisonment for six months.

- 24 -

Medical Examination and Treatment

Section 16 of the Ordinance stipulates that an employee who has
given notice of an accident shall submit himself to a free medical
examination by a registered medical practitioner, a registered Chinese
medicine practitioner or a registered dentist named by his employer
when this is offered within seven days of his giving notice. An
employee who is receiving periodical payments from his employer
shall submit himself for medical examination by a registered medical
practitioner, a registered Chinese medicine practitioner or a registered
dentist as required by his employer. If, however, any registered
medical practitioner, registered Chinese medicine practitioner or
registered dentist considers the employee unfit to attend medical
examination, the employee must notify the employer, and the
registered medical practitioner, registered Chinese medicine
practitioner or registered dentist named by the employer will arrange
an alternative time for medical examination. The employer has to pay
all the expenses for medical examination arranged by his registered
registered dentist. If a medical examination is arranged for the injured
employee, the examination shall be conducted by a practitioner from
the medical treatment of the same description as that received by the
employee.

The employee is entitled to have his own registered medical
practitioner, registered Chinese medicine practitioner or registered
dentist present at the medical examination, but at his own expense.

The registered medical practitioner, registered Chinese medicine
practitioner or registered dentist named by the employer to conduct
the examination shall prepare a report on the examination and send it
to the employer at the employers expense.

The employee may in writing request the employer to send to
him, free of charge, a copy of the report. The employer is required to
comply with such request before the later of the following

the expiry of 21 days after the employer receives the request; or
the expiry of 14 days after the report concerned is received by
the employer.
Chapter 9 Miscellaneous
- 25 -

If an employee fails to submit himself for such examination, his
right to compensation shall be suspended until such examination has
taken place; an employee who fails without reasonable cause to attend
for medical examination within 15 days of being required to do so
may lose his right to compensation.

An employee who is not attended by a registered medical
practitioner, registered Chinese medicine practitioner or registered
dentist must submit himself to free medical treatment given by a
registered medical practitioner, registered Chinese medicine
practitioner or registered dentist if so required by his employer. If the
employee fails to submit himself for such treatment, or having
submitted himself for such treatment disregards the instructions of
the registered medical practitioner, registered Chinese medicine
practitioner or registered dentist concerned, and the injury has been
aggravated thereby, the compensation payable may be affected.

Liability of the Principal Contractor

Section 24 of the Ordinance provides that when an employee of
a sub-contractor is injured at work, the principal contractor shall be
liable for any claim of compensation made by the injured employee
under the Ordinance. The principal contractor may, however, take
action to recover from the sub-contractor any payment which he is
required to make.

The injured employee employed by a sub-contractor may
issue a written request to the sub-contractor to supply the name and
address of the principal contractor. A sub-contractor who, without
reasonable excuse, fails to supply the above information within 7
days after the date of issue of the written request commits an
offence and is liable to a maximum fine of $50,000.

An employer commits an offence if he fails, without reasonable
excuse, to send the employee a copy of the examination report and is
liable on conviction to a maximum fine of $10,000.
- 26 -

The injured employee employed by a sub-contractor shall,
before making any claim or application by virtue of section 24 of the
Ordinance against a principal contractor, serve on the principal
contractor a notice in writing stating

(a) the name and address of the employee;
(b) the name and address of the sub-contractor by whom he is
employed;
(c) the address of the place of employment of the employee;
(d) the particulars of the accident and the injury suffered; and
(e) the amount of compensation to be claimed.

Claims for Common Law Damages

Against a Third Party Against an Employer
By an employee
When an employee is
injured in circumstances which
create a legal liability in some
person other than the employer,
he may take proceedings to
recover damages from the third
party as well as claiming
employees compensation
against the employer.

The Ordinance does
not limit the civil liability
of an employer. Thus, when
an injury to an employee is
caused by the negligence or
other wrongful act of an
employer, the employee
may recover compensation
and also sue for damages,
but the damages awarded
shall be reduced by the
value of the employees
compensation paid or
payable under the
Ordinance.
By an employer
Under similar situation, an
employer who is liable to pay
compensation may take action
against a third party to recover
the employees compensation,
indemnity or any sum payable to
the employee contractually.

- 27 -

Contracting Out

According to section 31 of the Ordinance, any contract or
agreement which removes or reduces the employers liability to pay
employees compensation under the Ordinance is null and void.

Employment Protection

(a) where the employee sustained an injury giving rise to
temporary incapacity not exceeding 3 days
before the period of temporary incapacity has expired
and the compensation has been paid; and

(b) where the employee sustained an injury giving rise to
temporary incapacity exceeding 3 days or permanent
incapacity
(i) before the Commissioner for Labour has issued the
Certificate of Compensation Assessment (Form 5); or

(ii) before the employer agrees with the injured employee as
to the compensation payable under the Ordinance; or

(iii) before an Employees Compensation Assessment Board
has issued the Certificate of Assessment (Form 7 or 8)
or the Certificate of Review of Assessment (Form 9 or
10),

whichever occurs first.
Section 48 of the Ordinance stipulates that, without the consent
of the Commissioner for Labour, an employer who terminates, or
gives notice to terminate, the contract of service of an employee
under the following circumstances commits an offence and is liable
on conviction to a maximum fine of $100,000:
- 28 -

Appendix 1
List of injuries
(First Schedule of the Employees Compensation Ordinance)

Item
Percentage of loss of
earning capacity

1. Loss of 2 limbs 100
2. Loss of both hands or of all fingers and both thumbs 100
3. Loss of both feet 100
4. Total loss of sight 100
5. Total paralysis 100
6. Injuries resulting in being permanently bedridden 100
7. Paraplegia 100
8. Any other injury causing permanent total disablement 100
9. Loss of arm at shoulder 75 (80)*
10. Ankylosis of shoulder joint
in optimum position
in worst position

35
55

11. Loss of arm between elbow and shoulder 75 (80)*
12. Loss of arm at elbow 75 (80)*
13. Ankylosis of the elbow joint
in optimum position
in worst position

30
50

14. Loss of arm between wrist and elbow 70 (75)*
15. Loss of hand at wrist 70 (75)*
16. Ankylosis of wrist joint
in optimum position
in worst position

30
40

17. Loss of 4 fingers and thumb of one hand 70 (75)*
18. Loss of 4 fingers of one hand 60 (65)*
19. Loss of thumb
both phalanges
one phalanx
guillotine loss of tip without loss of bone

30
20
8

(32)*
(22)*

20. Ankylosis of
interphalangeal joint of the thumb
metacarpophalangeal joint of the thumb
all these 2 joints of the thumb

4
8
12

Note : *Figures in brackets refer to percentage applicable to preferred hand.
- 29 -

Appendix 1 cont.

Item
earning capacity

21. Loss of index finger
3 phalanges
2 phalanges
one phalanx
guillotine amputation of tip without loss of bone

14
11
9
4

(15)*
(12)*
(10)*

22. Ankylosis of
distal interphalangeal joint of the index finger
proximal interphalangeal joint of the index finger
metacarpophalangeal joint of the index finger
all these 3 joints of the index finger

2
3
4
9

23. Loss of middle finger
3 phalanges
2 phalanges
one phalanx

12
9
7
2

24. Ankylosis of
distal interphalangeal joint of the middle finger
proximal interphalangeal joint of the middle finger
metacarpophalangeal joint of the middle finger
all these 3 joints of the middle finger

2
2
3
7

25. Loss of ring finger
3 phalanges
2 phalanges
one phalanx

8
6
5
2

26. Ankylosis of
distal interphalangeal joint of ring finger
proximal interphalangeal joint of ring finger
metacarpophalangeal joint of ring finger
all these 3 joints of the ring finger

1
2
2
5

27. Loss of little finger
3 phalanges
2 phalanges
one phalanx

7
6
5
2


- 30 -

Appendix 1 cont.

Item
earning capacity

28. Ankylosis of
distal interphalangeal joint of little finger
proximal interphalangeal joint of little finger
metacarpophalangeal joint of little finger
all these 3 joints of the little finger

1
1
2
4

28A. In the case of a loss of a whole finger of one hand, the
following percentages shall be awarded in addition to
those provided for the loss of a single finger. In this
item "finger does not include "thumb. These
additional percentages shall be awarded when 2 or
more fingers of the same hand are lost in the same
injury; or when one or more fingers of the same hand
are lost in the same injury to a hand of which one or
more fingers were lost in a previous injury, whether or
not the previous injury was work related or whether
compensation was paid or is payable for the loss

loss of a second finger of the hand
loss of a third finger of the hand
loss of the last finger of the hand
6
6
7
(7)*
(7)*
(9)*
29. Loss of metacarpals
first (additional)
second, third, fourth or fifth (additional)

8
3

30. Loss of leg at hip 80
31. Loss of leg at or above knee 75
32. Ankylosis of hip joint
in optimum position
in worst position

35
50

33. Loss of leg below knee 65
34. Ankylosis of knee joint
in optimum position
in worst position

25
35

35. Loss of foot 55
36. Ankylosis of ankle joint
in optimum position
in worst position

15
25

- 31 -

Appendix 1 cont.

Item
earning capacity
37. Loss of toes
all of one foot
great, both phalanges
great, one phalanx
other than great, for each one toe lost

20
14
4
3

38. Loss of sight of one eye 50
39. Loss of hearing of one ear 30
40. Total loss of hearing, both ears 100
41. Loss or deformity of outer ear 2
42. Loss of entire nose 25
43. Apparent deformity of nose 5
44. Loss of spleen 5
45. Loss of one kidney
if the other kidney is normal
if the other kidney is abnormal

15
65

- 90
46. Urethral injury
if urethral stricture requires dilation less
frequently than once every 2 weeks
if urethral stricture requires dilation once every
2 weeks or more frequently
if urethra is severed

5

10
20

- 20
47. Impairment of urinary bladder function
impairment in form of urgency or other mild
urinary bladder disorder
good reflex activity without voluntary control
poor reflex activity without voluntary control
no reflex and no voluntary control

5
13
23
38

- 12
- 22
- 37
- 60
48. Impairment of anorectal function
limited voluntary control
has reflex regulation but no voluntary control
no reflex regulation and no voluntary control

0
8
18

- 7
- 17
- 25

- 32 -

Appendix 2

List of occupational diseases
(Second Schedule of the Employees Compensation Ordinance)

Item

Description of
occupational disease

Nature of trade,
industry or process
Prescribed
period for
purposes of
Section 32

A. CAUSED BY
PHYSICAL
AGENTS

A1 Inflammation,
ulceration or
malignant disease
of the skin or
subcutaneous
tissues or of the
bones, or blood
dyscrasia, or
cataract, due to
electro-magnetic
radiations (other
than radiant heat),
or to ionising
particles

Any occupation involving exposure
to electro-magnetic radiations
other than radiant heat, or to
ionising particles.
10 years.
A2 Heat cataract Any occupation involving frequent
or prolonged exposure to rays from
molten or red-hot material.
3 years.
A3 Dysbarism, including
decompression
sickness,
barotrauma and
osteonecrosis

Any occupation involving subjection
to compressed or rarefied air or
other gases or gaseous mixtures.

1 year.
In the case
of arthritis
5 years.

A4 Cramp of the hand or
forearm due to
repetitive
movements
Any occupation involving prolonged
periods of handwriting, typing or
other repetitive movements of the
fingers, hand or arm.

1 year.
A5 Subcutaneous
cellulitis of the
hand (Beat hand)

Any occupation involving manual
labour causing severe or prolonged
friction or pressure on the hand.

1 year.

- 33 -

Item

Description of

Nature of trade,
industry or process
Prescribed
period for
purposes of
Section 32

A6 Bursitis or
subcutaneous
cellulitis arising at
or about the knee
due to severe or
prolonged external
friction or pressure
at or about the knee
(Beat knee)

labour causing severe or prolonged
external friction or pressure at or
about the knee.
1 year.

A7 Bursitis or
subcutaneous
cellulitis arising at
or about the elbow
due to severe or
prolonged external
friction or pressure
at or about the
elbow (Beat
elbow)
labour causing severe or
prolonged external friction or
pressure at or about the elbow.
1 year.
A8 Traumatic
inflammation of
the tendons of the
hand or forearm
(including elbow),
or of the associated
tendon sheaths
labour, or frequent or repeated
movements of the hand or wrist.
1 year.

A9 Carpal tunnel
syndrome
Any occupation involving repetitive
use of hand-held powered tools
whose internal parts vibrate so as
to transmit that vibration to the
hand, but excluding those which
are solely powered by hand.
1 year.
B. CAUSED BY
BIOLOGICAL
AGENTS

B1 Anthrax Any occupation involving contact with
animals infected with anthrax or the
handling (including the loading and
unloading or transport) of animal
products or residues.

1 month.

- 34 -

Appendix 2 cont.

Item

Description of

Nature of trade,
industry or process
Prescribed period
for purposes of
Section 32

B2 Glanders Any occupation involving contact
with equine animals or their
carcasses.

1 month.

B3 Infection by leptospira Any occupation involving -
(a) work in places which are, or
are liable to be, infested by
rats, field mice or voles, or
other small mammals;
(b) work at dog kennels or the
care or handling of dogs;
(c) contact with bovine animals
or their meat products or pigs
or their meat products.
3 months.

B4 Pulmonary disease
due to the inhalation
of the dust of mouldy
hay or other mouldy
vegetable produce,
and characterized by
symptoms and signs
attributable to a
reaction in the
peripheral part of the
bronchopulmonary
system, and giving
rise to a defect in gas
exchange (Farmer's
lung)
Any occupation involving exposure
to the dust of mouldy hay or other
mouldy vegetable produce by
reason of employment -
(a) in agriculture, horticulture or
forestry; or
(b) loading or unloading or
handling in storage such hay or
other vegetable produce; or
(c) handling bagasse.
1 year.
B5 Infection by organisms
of the genus brucella

Any occupation involving contact
with -
(a) animals infected by brucella,
or their carcasses or parts
thereof, or their untreated
products; or
(b) laboratory specimens or
vaccines of, or containing,
brucella.

1 year.

- 35 -

Appendix 2 cont.

Item

Description of

Nature of trade,
industry or process
Prescribed period
for purposes of
Section 32

B6 Tuberculosis Any occupation involving close and
frequent contacts with a source or
sources of tuberculosis infection
by reason of employment -
(a) in the medical treatment or
nursing of a person or persons
suffering from tuberculosis, or
in a service ancillary to such
treatment or nursing;
(b) in attendance upon a person
or persons suffering from
tuberculosis, where the need
for such attendance arises by
reason of physical or mental
infirmity;
(c) as a research worker engaged
in research in connection with
tuberculosis;
(d) as a laboratory worker,
pathologist, or post-mortem
worker, where the occupation
involves working with
materials which are a source
of tuberculosis infection, or in
any occupation ancillary to
such employment.

6 months.
B7 Parenterally contracted
viral hepatitis

Any occupation involving contact
with -
(a) human blood or human blood
products; or
(b) a source of viral hepatitis.
6 months.

B8 Infection by
streptococcus suis

Any occupation involving contact with
pigs infected by streptococcus suis, or
with the carcasses, products or
residues of pigs so infected.

1 month.
B9 Avian chlamydiosis Any occupation involving contact with
birds infected with chlamydia psittaci,
their remains or untreated products.

1 month.

- 36 -

Appendix 2 cont.

Item

Description of

Nature of trade,
industry or process
Prescribed period
for purposes of
Section 32

B10 Legionnaires' disease Any occupation involving the
repair, maintenance or service
of -
(a) cooling systems that use
fresh water; or
(b) hot water service systems.
1 month.
B11 Severe acute respiratory
syndrome
Any occupation involving close
and frequent contacts with a
source or sources of severe acute
respiratory syndrome infection
by reason of employment
(a) in the medical treatment or
nursing of a person suffering
fromsevere acute respiratory
syndrome, or in a service
ancillary to that treatment or
nursing;
(b) in attending to a person suffering
fromsevere acute respiratory
syndrome, where the need for
attendance arises by reason of
the persons physical or mental
infirmity;
(c) in identifying, detecting, tracing,
isolating, detaining, supervising
or surveillance of a person
suffering fromsevere acute
respiratory syndrome;
(d) as a research worker engaged in
research in connection with
severe acute respiratory
syndrome, or in a service
ancillary to that research; or
(e) as a laboratory worker,
pathologist, post-mortemworker
or funeral services worker,
where the employment involves
the handling of any human body
or other materials that are a
source of severe acute
respiratory syndrome infection,
or in a service ancillary to that
handling.
1 month.

- 37 -

Appendix 2 cont

Item

Description of

Nature of trade,
industry or process
Prescribed period
for purposes of
Section 32

B12 Avian influenza A Any occupation involving close
and frequent contacts with a
source or sources of avian
influenza A infection by reason
of employment
(a) as a worker engaged in
the handling of poultry or
birds or their uncooked
remains or residues, or
their untreated products,
that are a source of avian
influenza A infection, or
in a service ancillary to
that handling;
(b) as a research worker
engaged in research in
connection with avian
influenza A, or in a
service ancillary to that
research; or
(c) as a laboratory worker
engaged in the handling
of materials that are a
source of avian influenza
A infection, or in a
service ancillary to that
handling.
14 days.
C. CAUSED BY
CHEMICAL AGENTS

C1 Poisoning by lead or a
compound of lead
Any occupation involving the use
or handling of, or exposure to the
fumes, dust or vapour of, lead or
a compound of lead, or a
substance containing lead.

2 years.
In the case of
nephritis
4 years.
C2 Poisoning by manganese or
a compound of manganese

fumes, dust or vapour of,
manganese or a compound of
manganese, or a substance
containing manganese.

2 years.

- 38 -

Appendix 2 cont.

Item

Description of

Nature of trade,
industry or process
Prescribed period
for purposes of
Section 32

C3 Poisoning by phosphorus or
an inorganic compound of
phosphorus or the
anti-cholinesterase or
pseudo anti-cholinesterase
action of organic
phosphorus compounds

phosphorus or a compound of
phosphorus, or a substance
containing phosphorus.
3 years.

C4 Poisoning by arsenic or a
compound of arsenic
fumes, dust or vapour of, arsenic
or a compound of arsenic, or a
substance containing arsenic.
1 year.

C5 Poisoning by mercury or a
compound of mercury
mercury or a compound of
mercury, or a substance
containing mercury.

2 years.
C6 Poisoning by carbon
bisulphide
fumes, or vapour of, carbon
bisulphide or a compound of
carbon bisulphide, or a substance
containing carbon bisulphide.

1 year.

C7 Poisoning by benzene or a
homologue of benzene
fumes of, or vapour containing,
benzene or any of its
homologues.

1 year.

C8 Poisoning by a nitro- or
amino- or
chloro-derivative of
benzene or of a homologue
of benzene, or poisoning
by nitro-chlorobenzene
fumes of, or vapour containing, a
nitro- or amino- or
chloro-derivative of benzene or
nitro-chlorobenzene.

1 year.
In the case of
neoplasm -
10 years.

- 39 -

Appendix 2 cont.

Item

Description of

Nature of trade,
industry or process
Prescribed period
for purposes of
Section 32

C9 Poisoning by dinitrophenol
or a homologue or by
substituted dinitrophenols
or by the salts of such
substances
dinitrophenol or a homologue or
substituted dinitrophenols or the
salts of such substances.

1 year.
C10 Poisoning by halogen
derivatives of
hydrocarbons of the
aliphatic series
halogen derivatives of
hydrocarbons of the aliphatic
series.

1 year.
C11 Poisoning by diethylene
dioxide (dioxan)
diethylene dioxide (dioxan).

1 year.
C12 Poisoning by chlorinated
naphthalene
fumes of, or dust or vapour
containing, chlorinated
naphthalene.
1 year.

C13 Poisoning by oxides of
nitrogen
fumes of, or dust or vapour
containing, oxides of nitrogen.

1 year.
C14 Poisoning by beryllium or a
compound of beryllium
beryllium or a compound of
beryllium or a substance
containing beryllium.

1 year.
C15 Poisoning by cadmium Any occupation involving the use
dust or fumes of, cadmium.

1 year.

- 40 -

Appendix 2 cont.

Item

Description of

Nature of trade,
industry or process
Prescribed period
for purposes of
Section 32

C16 Dystrophy of the cornea
(including ulceration of
the corneal surface) of the
eye
or handling of, or exposure to,
arsenic, tar, pitch, bitumen,
mineral oil (including paraffin),
soot or any compound, product,
(including quinone or
hydroquinone) or residue of any
of these substances.

1 year.
C17 Primary epitheliomatous
cancer of the skin
arsenic, tar, pitch, bitumen,
mineral oil (including paraffin),
soot or any compound, product,
or residue of any of these
substances.

10 years.
C18 Chrome ulceration including
perforation of nasal
septum
or handling of chromic acid,
chromate or bichromate of
ammonium, potassium, sodium
or zinc, or any preparation or
solution containing any of these
substances.

1 year.

C19 Primary neoplasm of the
epithelial lining of the
urinary tract, (renal pelvis,
ureter, bladder and urethra)
including papilloma,
carcinoma-in-situ and
invasive carcinoma
Any occupation involving the
production, use or handling of
alpha-naphthylamine,
beta-naphthylamine or
methylene-bis-
ortho-chloraniline, or diphenyl
substituted by at least one nitro
or primary amino group or by at
least one nitro and primary
amino group (including
benzidine) and any of the above
substances if further ring
substituted by halogeno methyl
or methoxyl group and the salts
of any of the above substances
and the production of auramine
and magenta.
20 years.
C20 Peripheral poly-neuropathy Any occupation involving the
production, use or handling of, or
exposure to, any physical form of or
any preparation or solution
containing n-Hexane or
methyl-n-butyl ketone.

1 year.

- 41 -

Appendix 2 cont.

Item

Description of

Nature of trade,
industry or process
Prescribed period
for purposes of
Section 32

C21 Localised new growth of the
skin, papillomatous or
keratotic
Any occupation involving the use or
handling of, or exposure to, arsenic,
tar, pitch, bitumen, mineral oil
(including paraffin), soot or any
compound, product or residue of any
of these substances.

10 years.
C22 Occupational vitiligo Any occupation involving the use
paratertiary-butyl phenol,
paratertiary-butyl catechol,
para-amyl-phenol, hydroquinone
or the monobenzyl or monobutyl
ether of hydroquinone.
1 year.

D. CAUSED BY
MISCELLANEOUS
AGENTS

D1 Inflammation or ulceration of
the skin produced by dust,
liquid or vapour (including
the condition known as
chloracne but excluding
chrome ulceration)

Any occupation involving
exposure to dust, liquid or
vapour, capable of irritating the
skin.
1 year.
D2

Inflammation or ulceration of
the mucous membrane of the
upper respiratory passages or
mouth produced by dust,
liquid or vapour
Any occupation involving
exposure to dust, liquid or
vapour.
1 year.

D3 Carcinoma of the nasal cavity
or associated air sinuses
(nasal carcinoma)
Any occupation involving the
manufacture or repair of wooden
goods or the manufacture or
repair of footwear or components
of footwear made wholly or
partly of leather or fibre board.

10 years.

- 42 -

Appendix 2 cont.

Item

Description of

Nature of trade,
industry or process
Prescribed period
for purposes of
Section 32

D4 Byssinosis Any occupation involving
exposure to raw cotton dust.

1 year.
D5 Occupational asthma Any occupation involving the use
any of the following agents
which may irritate or sensitise
the respiratory system -
(a) isocyanates;
(b) platinum salts;
(c) fumes or dusts arising from
the manufacture, transport
or use of hardening agents
(including epoxy resin
curing agents) based on
phthalic anhydride,
trimellitic anhydride or
triethylenet-etramine;
(d) fumes arising from the use
of rosin as a soldering flux;
(e) formaldehyde;
(f) proteolytic enzymes;
(g) animals or insects used for
the purposes of research or
education or in laboratories;
(h) dusts arising from the
sowing, cultivation,
harvesting, drying,
handling, milling, transport
or storage of barley, oats,
rye, wheat or maize, or the
handling , milling, transport
or storage of meal or flour
made therefrom.
(i) any other sensitising agent
inhaled at work.
1 month.

- 43 -

Part II

Frequently Asked Questions on Common Employees Compensation
Issues

(I) Compulsory Insurance

Q1 What should an employer take note of when taking out an
employees compensation insurance policy?

A1 When taking out an employees compensation insurance policy,
apart from ensuring the minimum insurance cover meets the
statutory requirements, employers should also take note of the
followings:

No deduction should be made from the earnings of an employee
for defraying the cost of taking out employees compensation
insurance policies;
Ensuring that all employees are covered by the insurance policy
and that when the number of employees increases, the employer
should notify the insurer accordingly as soon as possible;
Giving a detailed declaration to the insurer on the annual
earnings and job duties of individual employees;
Listing the usual work locations of employees;
Stating specifically those employees who are required to work
outside Hong Kong or take overseas business trips;
Stating specifically whether any work is sub-contracted to
sub-contractor and stating clearly whether the employees of the
sub-contractor are covered by the policy; and
Bewaring of the expiry date of the insurance policy and taking
action to renew the insurance policy in advance to ensure that
the insurance cover is not interrupted and to avoid contravention
of the Ordinance.

- 44 -

Q2 Is an employer required to notify his insurer when his employee
sustains a work injury?

A2

Other than reporting to the Commissioner for Labour, an
employer should also notify the insurer as soon as possible,
within the stipulated period and in the specified format (in
writing or by specified form) required by the insurer, when his
employee sustains a work injury;
The employer should also keep a record of the periodical
payments (i.e. payments for sick leaves for work injury) paid to
the injured employee, the original copies of the Certificate of
Compensation Assessment (Form 5) and the Certificate of
Assessment (Form 7) issued by the Labour Department, medical
certificates and receipts in respect of medical expenses properly;
and submit the relevant documents to the insurer within the
stipulated period and in the specified format required by the
insurer for indemnifying the amount of compensation already
paid to the injured employee; and
On receiving any legal documents, including an order or a
summons issued by the court, the employer should notify his
insurer the soonest possible or seek legal advice.

(II) Notification of Accident

Q3 What should an employee do if he suspects the employer has not yet
reported his work injury or prescribed occupational disease to the
Commissioner for Labour?

A3 If the injured employee has doubt as to whether his employer has
reported the work injury or the prescribed occupational disease to
the Commissioner for Labour, he could notify the Employees
Compensation Division of the Labour Department. Its branch
offices handle employees compensation claims according to the
area where the work injury occurred, or according to the place of
employment for prescribed occupational disease (see the
Introduction). The office, upon receipt of the notification of the

- 45 -

employee, will ask the employer in writing to report the work injury
or the prescribed occupational disease according to the requirement
of the Ordinance, if the notification from the employer has not yet
been received.

(III) Fatal or Non-Fatal Cases outside Hong Kong

Q4 If an employee sustains a work injury outside Hong Kong, would he
be covered by the Ordinance?

A4 According to the Ordinance, if an employee sustains an injury or
dies as a result of an accident arising out of and in the course of his
employment, his employer is in general liable to pay compensation
under this Ordinance even if the employee might have committed
acts of faults or negligence when the accident occurred.

The Ordinance applies to employees employed in Hong Kong by
local employers injured while working outside Hong Kong. Besides,
an accident to an employee resulting in injury or death is deemed to
arise out of and in the course of his employment if it happens while
the employee is travelling, for the purpose of and in connection with
his employment by any means of transport permitted by his
employer, between Hong Kong and any place outside Hong Kong or
between any other such places outside Hong Kong.

Even if the employer is a person carrying on business outside Hong
Kong, or a crew member is working on a foreign ship, the Ordinance
still applies if the employers submit to the jurisdiction of the Courts
of Hong Kong and the employees / crew members have been
recruited or engaged in Hong Kong.

- 46 -

Q5 In respect of the employees compensation, are there any differences
between employees who suffered work injury within and outside
Hong Kong?

A5 No difference at all, but employees injured outside Hong Kong
should take note of the followings:

Foreign compensation : compensation payable under the
Ordinance to an employee shall be reduced by the amount of any
foreign compensation paid to him in respect of the same injury.

Periodical Payments : the employer shall pay the injured
employee, during the period of temporary incapacity, periodical
payments at the rate of four-fifths of the difference between the
employees monthly earnings at the time of the accident and his
monthly earnings during the period of temporary incapacity.
Temporary incapacity refers to a period of absence from
duty certified to be necessary by a registered medical
practitioner, a registered Chinese medicine practitioner, a
registered dentist or an Employees Compensation Assessment
Board is deemed to be a period of temporary incapacity. For
employees receiving medical treatment outside Hong Kong, the
temporary incapacity shall be determined by the Assessment
Board. Paper Medical Clearance is inapplicable for such cases.

Medical Expenses : an employer is also liable to pay the medical
expenses for medical treatment given outside Hong Kong in
respect of a work injury sustained by an employee outside Hong
Kong and arising out of and in the course of that employees
employment. The daily maximum amount is the same as that for
injuries sustained in Hong Kong. The medical treatment shall be
the treatment given by, or under the supervision of, a person
who is allowed to practise medicine, surgery, dentistry,
chiropractic, physiotherapy or occupational therapy in the place
where such medical treatment is given. Where necessary, an
employer or an employee may apply to the Commissioner for
Labour for a certificate for determining the amount of medical
expenses to be paid by the employer.

- 47 -

Cost of Prostheses and Surgical Appliances : if an employee
sustains a work injury outside Hong Kong in an accident arising
out of and in the course of his employment, and submits himself to
medical treatment by or under the supervision of a person who is
allowed to practise medicine, surgery or dentistry in the place
where such medical treatment is given, the employer shall, if the
Prostheses and Surgical Appliances Board approves, be liable to
pay for the cost of supplying and fitting the prosthesis or surgical
appliance required, subject to a maximum amount, which is the
same as that for injuries sustained in Hong Kong.

Q6 What should employer and employee take note of if an employee
sustains a work injury outside Hong Kong and receives medical
treatment at the place of accident?

A6 Points to Note for employers

Other than reporting to the Commissioner for Labour, an
employer should also notify the insurer as soon as possible,
within the stipulated period and in the specified format (in
writing or by specified form) required by the insurer, when his
employee sustains a work injury.
The employer should also keep a record of the periodical
payments (i.e. payments for sick leaves for work injury) paid to
the injured employee, the original copies of the Certificate of
Compensation Assessment (Form 5) and the Certificate of
Assessment (Form 7) issued by the Labour Department, medical
certificates and receipts in respect of medical expenses properly;
and submit the relevant documents to the insurer within the
stipulated period and in the specified format required by the
insurer for indemnifying the amount of compensation already
paid to the injured employee.

- 48 -

Points to note for employees
Notify the employer/supervisor/human resources department of
the work injury immediately regardless of whether it is serious
or not, and submit to the employer originals of medical
certificates and receipts for medical expenses in relation to
medical consultation and follow-up treatment as soon as
possible. Remember to keep copies.
When receiving medical treatment outside Hong Kong,
remember to state clearly to the attending medical staff the cause
and course of the injury and keep all medical records, including
attendance slips, appointment slips, referral letters, medical
certificates, admission slips and medical reports etc. This will on
one hand facilitate medical staff to make proper diagnosis and
offer appropriate treatment, and on the other hand assist the
process of medical clearance and assessment by Occupational
Medicine Unit of the Labour Department and the Assessment
Board respectively.
If necessary, receive medical treatment from registered medical
practitioner, registered Chinese medicine practitioner or
registered dentist in Hong Kong, and provide the medical
information to the Labour Department for follow up.

(IV) Suspected Cases of Prescribed Occupational Disease

Q7 What should an employee do if he suspects he has contracted an
occupational disease specified by the Ordinance?

A7 If an employee suspects being contracted an occupation disease
specified in Second Schedule of the Ordinance, he should seek
medical treatment as soon as possible. He should describe to his
treating doctor full details of the illness, as well as the occupation, to
facilitate the doctor to make diagnosis. If the treating doctor finds or
reasonably believes that the employees illness is one of the
occupational diseases specified in Second Schedule of the Ordinance,

- 49 -

and believes that such illness was or may have been attributable to
an occupation specified in the Schedule in which he was employee
at any time within the prescribed period, the doctor should notify the
Commissioner for Labour as soon as possible by completing LD483.
Staff of the Occupational Health Service of the Labour Department
will follow up the case expeditiously. The form is available at
branch offices of the Employees Compensation Division.

Q8 What should an employee do if it is confirmed that he has contracted
an occupational disease specified by the Ordinance?

A8 Upon receipt of LD483 from treating doctor of the employee, staff
of the Occupational Health Service of the Labour Department will
follow up the case expeditiously. The employee should receive
treatment as advised by his treating doctor. On the other hand, the
employee should submit to his employer relevant confirmation
document and original copy of medical certificates, with personal
copies, as soon as possible. He should also remind his employer to
notify the Commissioner for Labour, within 14 days in prescribed
form (Form 2A), of any prescribed occupational disease that comes
to his knowledge, irrespective of whether the occupational disease
gives rise to any liability to pay compensation. Upon receipt of Form
2A submitted by the employer, the Labour Department will follow
up promptly.

(V) Calculation of Earnings

Q9 What should be taken as the monthly earnings of an injured
employee working in individual industry (such as the construction
industry) which features an irregular pattern of working days?

A9 The monthly earnings* is to be taken as the earnings for the month
immediately preceding the date of the accident, or the average
monthly earnings for the previous 12 months of employment (or any
lesser period if the employee has not been so long employed),
whichever calculation is more favourable to the employee.

If the employee in question is daily rated, and that he actually
worked for 19 days in the month immediately preceding the date of
the accident, the employees earnings for the one month immediately
preceding the date of the accident will be:

- 50 -

Earnings of the employee for the month immediately preceding the
date of the accident = daily wages x 19 days

Suppose that the employee had only worked for the employer for 4
months before the date of the accident, the average monthly earnings
of the employee in the less-than-12-month period is as follows:

Average monthly earnings = Actual total earnings of the
of the employee in the less- employee in the past 4 months
than-12-month employment 4

Note: * Please refer to Chapter 6 for the definition of earnings.

(VI) Calculation of Medical Expenses

Q10 Can an employee receive medical treatment outside Hong Kong if he
sustains a work injury in Hong Kong?

A10 According to the Ordinance, unless the employer entered into an
agreement in writing with the employee, the employer is not liable to
pay the employee medical expenses in respect of medical treatment
given outside Hong Kong in relation to an accident occurring in
Hong Kong.

- 51 -

Q11 Would the employer be still liable to pay the medical expenses if the
injured employee purchases medicines pursuant to the same
prescription on a second or subsequent occasions by himself?

A11 According to the Ordinance, medical expenses include the cost of
medicines prescribed by a registered medical practitioner, a
registered Chinese medicine practitioner or a registered dentist for
the direct treatment of the relevant injury. Unless the prescription
contains a direction that the medicines are to be dispensed for a
stated number of times and the medicines are dispensed in
accordance with that direction, the employee shall not be reimbursed
for the same prescription on the subsequent occasions. And the
amount of medical expenses the employee may recover is subject to
the daily maximum of medical expenses payable.

(VII) Procedures for Medical Clearance and Assessment of
Permanent Loss of Earning Capacity

Q12 How would an injured employee go through the procedure for
medical clearance?

A12 (i) For the work injury with a period of temporary incapacity not
exceeding 7 days and with no permanent incapacity involved,
the case should be settled by direct payment (employer to
submit Form 2B) or determination of compensation by
agreement according to the Ordinance (employer to submit
Form 2 and complete Part H direct settlement). Employer pays
periodical payments and medical expenses to the employee.
Medical clearance or arrangement for assessment on the loss of
earning capacity is not required for such cases.

(ii) For any other cases, the Employees Compensation Division of
the Labour Department, upon receipt of the work-accident
notification from the employer, will issue a Medical Clearance
Notification and other related information to the injured
employee. The employee should approach the

- 52 -

Occupational Medicine Unit of the Labour Department by
appointment 1 month after the accident for medical clearance.
When approach the Occupational Medicine Unit, the employee
should bring along the photocopies of all medical certificates,
relevant appointment slips and all other related documents.

Q13 Will an injured employee be arranged with medical assessment?

A13 An injured employee may not be arranged with medical assessment.
Where it appears that permanent incapacity may result from the
injury, the Occupational Medicine Unit will arrange the injured
employee to attend the Employees Compensation (Ordinary
Assessment) Board for assessing the percentage of loss of earning
capacity permanently caused by the injury. The employee should
attend as scheduled. The Assessment Board will issue and send a
certificate of assessment to the employer and the employee
separately by mail soon after the assessment. If it could be
substantiated that the injury sustained by the employee, including
injuries to limbs and body parts, functional impairment of organs
and mental impairment, etc, are related to the work accident and
have caused temporary and/or permanent loss of earning capacity,
the amount of employees compensation would be assessed
accordingly.

(VIII) Settlement of Employees Compensation Cases by Paper
Medical Clearance

Q14 Under what circumstances that an employees compensation case
can be settled by Paper Medical Clearance?

A14 To speed up the settlement of employees compensation cases, the
employer and employee may agree to adopt the Paper Medical
Clearance to facilitate the issue of the Certificate of

- 53 -

Compensation Assessment (Form 5).

The application must fulfill all of the following conditions:

there is no dispute over the case;
the period of sick leave should last for more than 7 days (if the
period of sick leave does not exceed 7 days, the employer and
the employee should settle the case via direct payment by
employer or determination of compensation by agreement in
accordance with section 10(11) or section 16CA of the
Ordinance respectively);
the injury does not lead to any permanent incapacity;
the injury does not involve damage to teeth or the need for
fitting of prostheses or surgical appliances;
all medical certificates are issued by registered medical
practitioners, registered Chinese medicine practitioners or
registered dentists;
the employees sick leave has already come to an end;
the employer must provide copy of all of the employees
medical certificates in respect of the employees compensation
case; and
for occupational disease case, it should be the one specified in
the Second Schedule of the Ordinance as advised by the
Occupational Health Officer.

If the case meets the above requirements, an employer, with the
agreement of an employee, may submit an application to the branch
office of Employees Compensation Division (ECD) to settle the
employees compensation case by Paper Medical Clearance. If the
application is approved, the employee will not be required to attend
the medical clearance in person at the Occupational Medicine Unit
of the Labour Department. The application form is available at
branch offices of ECD.

- 54 -

Q15 What should an employer do if the employee fails to complete
medical clearance or assessment procedure despite Labour
Departments repeated requests?

A15 In case an employees compensation case remains unsettled due to
the employees failure to complete medical clearance or assessment
procedure long after he has recovered or returned to work, an
employer may consider applying for Paper Medical Clearance.

In addition to the conditions mentioned in A14, it is also required to
fulfill the following two conditions:

the case cannot be settled due to failure of the injured employee
to complete the medical clearance / assessment procedure
despite repeated requests made by the Labour Department; and
the employer has proof on the clearance of all periodical
payments.

If the case meets the above requirements, an employer may, together
with relevant documents, submit an application to the branch office
of ECD. ECD would send a final reminder on medical clearance to
the injured employee where appropriate. If the injured employee
still fails to act accordingly, ECD would consider presuming that the
injured employee has not suffered any permanent incapacity or has
given up his rights to claim compensation for permanent incapacity
and issuing a Certificate of Compensation Assessment (Form 5) to
employer and employee so as to settle the case. The application form
is available at branch offices of ECD.

(IX) Employees Compensation after Resignation of Injured
Employee

Q16 An employee resigned after a work-related accident, but the case has
not yet settled. Is the employer still liable to pay periodical payments

- 55 -

and other compensation to the ex-employee who is granted further
sick leave by a registered medical practitioner, a registered Chinese
medicine practitioner or a registered dentist due to the work injury?

A16 If the ex-employee can produce medical certificates issued by
registered medical practitioners, registered Chinese medicine
practitioners

or registered dentists certifying that a further period of
absence from duty is necessary in relation to the work injury (i.e. the
period of temporary incapacity), the employer is still liable to pay
him periodical payments for the sick leave so granted and taken,
irrespective of whether the employment relationship still exists. The
employer is also liable to pay the medical expenses and
compensation for permanent total or partial incapacity as stipulated
in the Ordinance.

(X) Doubtful Employees Compensation Case

Q17 How should an employer handle a doubtful employees
compensation case?

A17 If the employer is in doubt about the cause of an employees injury
or sick leave, he should conduct preliminary investigation as soon as
practicable, including interviewing the injured employee to obtain
details of the accident, inquiring of the witnesses about the
circumstances, assessing the possibility of the work environment
leading to the accident, and requesting the attending registered
registered dentist of the injured employee to provide a medical
report for reference. On the other hand, the employer can contact the
insurer for appropriate follow-up action, such as arranging a medical
examination to be conducted by a registered medical practitioner,
registered Chinese medicine practitioner or registered dentist named
by the employer for the injured employee. The employer may also
seek professional legal advice. On encountering a suspected
fraudulent case, an employer may consider forwarding the evidence
collected and other relevant information to the Police for action. If
the employer is still in doubt about the work injury case, he may
pass his views and the relevant information to the Labour
Department. The Labour Department will give its views to both
parties on the likelihood of the case being a work injury from the
medical point of view and according to the provisions of the
Ordinance. Please take note that the Labour Department does

- 56 -

not have the authority to make adjudication on any dispute of the
case. If the employer and the employee could not reach any
settlement with the assistance of the Labour Department, the case
shall be determined by the Court.

Q18 If an employer considers that he is not obliged to take up any
statutory obligation to pay any compensation in relation to a
work-related accident, is he still required to notify the Commissioner
for Labour of the accident?

A18 According to section 15 of the Ordinance, an employer is required to
notify the Commissioner for Labour of any work-related accident in
the manner set out in the Ordinance, irrespective of whether the
accident gives rise to any liability to pay compensation. If employer
is in doubt about whether a work injury is work-related or cannot
reach a decision over admission of liability, he should inform this
department of his query in reporting the injury at work, either by
making a note in the Form 2, or attaching a full account of relevant
information available to the employer. The Employees
Compensation Division of the Labour Department would then tender
our advice and assistance as appropriate.

(XI) Others

Q19 What should an injured person do when being approached by
recovery agents peddling claims recovery service?

A19 If approached by recovery agents peddling claims recovery service,
an injured person should not disclose to them any personal
particulars, discuss with them his injury case or sign any document,
so as to avoid his personal information being abused or he may face
unanticipated legal consequences and financial liabilities. The
Department of J ustice holds that the activities of recovery agents
may constitute offences of champerty and maintenance, and the
interests of the victims of personal injury cases may be jeopardized
as their rights to compensation may not be fully protected. Recovery
agents may draw up agreements with victims in work or traffic
accident requiring the latter to share a substantial portion of the

- 57 -

compensation recovered. Under the laws of Hong Kong, unlawfully
maintaining or sharing the benefits of legal proceedings may
constitute criminal offences, which are subject to a fine and up to
seven years imprisonment on conviction. The injured in any
accident, including work accident and traffic accident, should seek
proper legal advice, or assistance from solicitors or government
departments such as the Legal Aid Department, the Labour
Department and the Social Welfare Department. Anyone who feels
being harassed should contact the Police immediately for assistance.

- 58 -

A Concise Guide To The Employees' Compensation Ordinance (With Frequently Asked Questions On Common Employees' Compensation Issues)

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